Ikea raises UK prices after import cost hit from Brexit
The flatpack furniture firm has boosted price tags by 3.6% in some areas.
Swedish retailer Ikea has increased prices on some UK products after being confronted by higher import costs following sterling’s slump since the Brexit vote.
While it tried to shield consumers, the flatpack furniture firm still boosted price tags by 3.6% in some areas to counter a 13.7% jump in the cost of imports.
Ikea unveiled the Brexit impact as it gave an update on its UK performance, with total sales rising 6% to £1.8 billion in 2017.
The retailer said its share of the market had increased by 0.5%, bringing it closer to an overall target of 15% market share by 2027.
Gillian Drakeford, country retail manager for Ikea UK and Ireland, said: “Despite a level of economic uncertainty, our brand is even more relevant and we continue our efforts to bring affordable, well-designed home furnishing solutions to the UK.
“The Brexit vote has been on everyone’s lips and the devaluation of the pound has been a challenge for many businesses.
“As we import a lot of our products from overseas, this increased our costs by 13.7%. To keep our range accessible and affordable for the many, we absorbed most of these costs, increasing prices by just 3.6%.”
The retailer created 1,000 jobs this year, with plans to recruit another 850 workers when it launches new stores in Greenwich and Exeter.
Ikea, which has 20 stores across the UK employing 10,900 people, said online sales had grown 10% since it launched a web platform in August last year.